Blurred Boundaries between Firms, and New Boundaries within (Large Multinational) Firms: The Impact of Decentralized Networks for Innovation

Abstract

Changes in the environment for international business activities have facilitated more open networked formations, both within and between firms. The spread of more open networks for innovation is increasingly blurring the boundaries between firms. Yet in contrast, more open relationships within large multinational corporations imply

that some new boundaries are being correspondingly erected between different sub-units of the firm. A critical feature of more open structures is that internal and external networks have become more closely connected to one another.